Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Spectrum Brands Partners JD.com to Capture Chinese Market

Consumer goods company, Spectrum Brands Inc. (SPB - Free Report) , has partnered with China’s largest e-Commerce company and retailer, JD.com (JD - Free Report) to launch an online sales program in the country. This will not only enhance its worldwide presence but also mark the company’s entry into the world’s largest e-commerce market.

Per the deal, Spectrum Brands will offer its expanded range of innovative and high-quality products through JD.com’s seamless online portal to entice the emerging middle-class section of consumers in China. Additionally, the company expects its products to find a place in the carts of the more than 258 million active customers in China by opening new flagship stores across the country.

Spectrum Brands expects to start offering a wide range of consumer products through multiple flagship stores in China, effective this month. This will allow the Chinese customers to gain access to some high-quality products from leading brands under various categories including home appliances, personal care, pet supplies, hardware and home improvement, home and garden, batteries and auto care.

As part of the phase one of the plan, new flagship stores including brands like Remington, Rayovac, George Foreman, Armor All, STP, Tetra, Dingo, FURminator and Nature’s Miracle will open doors in coming weeks.

Given its partnership with JD.com, the company stated that all products sold in its flagship stores as well as other assortments on JD.com will be delivered to customers’ doorsteps through JD.com’s top-notch logistics network and same-or next day shipping guarantee.

Notably, JD.com’s fulfillment capabilities are outstanding as its fulfillment infrastructure is the largest among e-Commerce companies in China. As of Jun 30, JD.com controlled seven fulfillment centers and 335 warehouses covering 2,691 counties and districts across China. Each of these facilities is staffed by its own employees.

Spectrum Brands’ Performance

Spectrum Brands’ shares have declined 5.3% in the past month, against the industry’s growth of 0.3%. The recent decline in share price can be largely attributed to the company’s second consecutive bottom-line miss reported in third-quarter fiscal 2017. Further, the top line lagged estimates for the fourth straight quarter. Sales were hurt by lower personal care and small appliances revenues.

Additionally, this Zacks Rank #4 (Sell) company continues to battle adverse foreign currency effects, which is likely to mar results in the near term. Management expects net sales for fiscal 2017 to include about 70-90 basis points impact from currency headwinds.

On the positive front, we remain encouraged by the company’s innovative products in all categories and persistent leverage of its global infrastructure and shared services. Additionally, it is making acquisitions and exiting underperforming businesses to improve profitability, margins and free cash flow.

Boston Beer has improved 3.6% in the last three months. Further, the company has delivered an average positive earnings surprise of nearly 50% in the trailing four quarters.

Sanderson Farms has surged a whopping 58.8% year to date. Also, the company has delivered an average positive earnings surprise of 14% in the trailing four quarters.

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.

Resources

Client Support

Follow Us

Zacks Moblie App

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2018 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2017. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.